Interface News reporter | Zhuang Jian

After the release of the first quarter resultsPragmaticodin, Fuyao Glass (600660Pragmaticodin(.SH / 03606.HK) shares rose sharply today.

As of noon on April 26, Fuyao Glass A shares closed at 49.05 yuan, up 9.61%; Hong Kong stocks were at 47.9 Hong Kong dollars, up 13.11%, reaching new highs since October and August 2021, respectively.

Last night, Fuyao Glass disclosed that first-quarter revenue was 8.83 billion yuan, up 25 per cent from a year earlier, while net profit was 1.38 billion yuan, up 51 per cent from a year earlier.

This set an all-time high for its first quarter performance. Fuyao Glass said that the increase in net profit in the quarter mainly benefited from revenue growth and the company's improvement in quality and efficiency.

In terms of quarterly revenue, Fuyao Glass's performance in the first quarter of this year was second only to the fourth quarter of last year, the second highest in history. The net profit in the first quarter is not the highest. In the second quarter of last year, its net profit reached an all-time high of 1.92 billion yuan.

It is worth noting that due to the mismatch between high supply and weak demand, national glass prices continued to fall in the first quarter of this year. As of March 29th, the contract of glass main force 2405 closed at 1471 yuan / ton, down more than 20% from the beginning of January.

For the whole of last year, Fuyao's revenue and net profit reached record highs. Revenue reached 33.1 billion yuan and net profit reached 5.6 billion yuan, an increase of 18% over the same period last year.

Last year, Fuyao Glass sold 140 million square meters of automotive glass, up 10 per cent from the same period last year. According to the statistics of the China Association of Automobile Manufacturers, China's automobile production and sales last year were 30.161 million and 30.094 million respectively, an increase of 11.6% and 12% respectively over the same period last year. Production and sales exceeded 30 million for the first time, a record high.

According to the China Association of Automobile Manufacturers, car production and sales in China reached 6.606 million and 6.72 million respectively in the first quarter of this year, up 6.4 per cent and 10.6 per cent respectively from a year earlier.

Fuyao Glass is the world's largest supplier of automotive glass, which accounts for about 90% of its revenue. Its global market share exceeds 30%, while China's market share exceeds 65%. Cao Dewang, chairman of the company, is the actual controller of Fuyao Glass.

Due to the shortage of production capacity, Fuyao Glass made two consecutive efforts to expand glass production capacity from the end of last year to the beginning of this year, selecting sites in Fuqing City, Fujian Province and Hefei City, Anhui Province, with a total investment of 9 billion yuan.

Cao Dewang said that this investment not only meets the needs of market development, but also lays the foundation for the company's future growth.

At present, Fuyao Glass has laid out ten largest automotive glass production bases in China, including Shanghai, Suzhou, Changchun and other places.

The new automobile glass production capacity of Hefei base and Fuqing base will reach 46.6 million square meters. Based on this calculation, the new capacity will account for about 32% of the company's output in 2023.

Among them, Hefei base focuses on the domestic market, Fuqing base aims at overseas markets, and will become the largest automotive glass export base of Fuyao Glass in the world. Last year, overseas operations accounted for about 45 per cent of Fuyao's revenue.

On April 8 this year, Fuyao Glass Hefei Base has officially started construction, with an annual output of 4 million sets of automotive glass and 4 million sets of spare glass, with an estimated annual output value of 6 billion yuan.

Fuyao Glass said that Anhui gathered BYD, Chery, Volkswagen, Xilai and many other vehicle enterprises, the layout of Hefei base will further expand the company's production and sales scale, enhance the stickiness of cooperation with automobile manufacturers, and expand its competitive advantage.